Performance evaluation of electricity distribution companies with analytic hierarchy process and data envelopment analysis

Electricity sector in Turkey has three main activities as generation, tranmission and distribution. After the completion of privalization of electricity distribution sector in 2013, the electricity distribution activities in Turkey. Started to be carried out by private electricity distribution companies in 21 areas. The privatization aimed to increase service quality through competition. Businesses are struggling with each other in an increasingly competitive environment and the performance evaluation systems are considered to be an important practice to demonstrate the results of this struggle. The Energy Market Regulatory Authority monitors and supervises the electricity distribution companies on a periodic basis. In addition, Turkey Electricity Distribution Company Inc. conducts regular or partial audits for electricity distribution companies and reports the results to the Energy Market Regulatory Authority. However, there are no performance evaluation systems where the performance of distribution companies are evaluated using a multiple criteria approach for all activities. Therefore, in this study, it is intended to make a detailed investigation for electricity distribution sector, to establish a performance evaluation system based on analytic hierarchy process for the evaluation of 21 electricity distribution companies in Turkey and to compare the results of the two methods upon the replication of the previous work for data envelopment analysis with recent data.